BBA 4326 Unit I Assessment

BBA 4326 Unit I Assessment

What are “economic-related adjustments” in the context of global pricing? How do those adjustments affect global pricing and selling processes, and why are they necessary?

In the context of global pricing, economic-related adjustments are adjustments that are made to the prices of products from country to country. Prices of goods and services will differ from around the world and prices are typically higher in richer countries and lower in poorer countries. Companies who sell products globally must take into account different income levels across the globe and adjust prices to match these differences (Adjusting for price differences across the world,” 2018). According to Garrett (2015), many leading companies employ global pricing policies for products and services using economic related adjustments. These adjustments can be triggered by a number of factors including labor rates in specific regions or countries, inflation/deflation, and value-added to name a few.

What are the key ingredients for building a successful business partnership? How do they relate to each other and how do they differ from each other?

The key ingredients to building a successful partnership are complimentary strength, common customer base, and chemistry (Garrett, 2015). “Often businesses seek to find a partner or partners that have strength in areas in which they are weak” (Garrett, 2015, p. 13). This is known as complimentary strength. The second ingredient of sharing a common customer base defines how businesses can partner together and strategically place or promote one another’s products without giving up their market share. Each company can utilize one another as a means of expanding and taking advantage of their common customer base. The third key ingredient is chemistry. Generally, companies look to partner with other organizations that have a good reputation within their industry and who share common leadership visions, commitments, and financial strength (Garrett, 2015).

While there are multiple aspects to consider when building a successful business partnership, trust is another ingredient that must be considered and can be one of the biggest challenges in creating and maintaining a successful partnership. Trust is not a physical item or asset that can be seen or touched, but is much more something that is felt and can be understood. Trust within a partnership is something that is earned over time and is greatly helped by involved parties doing what they say they are going to do. Though trust can typically take years and years to build, it can be lost very quickly should one party fall short on a promise (Garrett, 2015).

The successful partnership pyramid discussed in the lesson is a mixture of inputs (factors that have to be considered) and outputs (things resulting from combining the inputs). In an essay, separate the individual aspects of the successful partnership pyramid into inputs and outputs and explain why each aspect of the pyramid is an input or an output.

As seen in the successful business partnership pyramid, the needs, wants and desires of customers are the foundation and drive that create business and business partnerships. Businesses look to build partnerships based on the three key ingredients of complimentary strength, common customer base, and chemistry. Complimentary strength occurs when businesses identify weak points within their operations and form partnerships with other organizations that can fill those weak points with strengths. Additionally, companies look to form partnerships with other organizations based on a common customer base. It can be very beneficial to form a partnership with another company that may not sell the same product or service perhaps, but shares a customer base in which both companies could market and sell their products simultaneously. Chemistry in the simplest form just means forming partnerships with other companies that share the same values, goals, ideals, morale’s, and financial security and capability. Once a partnership agreement has been formed based on these key ingredients, its success is dependent very heavily upon how each party within the partnership manages expectations and honors their commitments. Doing so in a successful manner will ultimately lead to garnered trust within the business relationship. This aspect can take a great deal of time to occur and is very easily lost should one party not hold up their end of the agreement. Building trust is one of the greatest challenges in creating and maintaining successful long term partnerships, but if accomplished it can be very beneficial to involved parties. Building trust within partnerships also helps to build trust with customers and leads to increased customer satisfaction and loyalty (Garrett, 2015).

Adjusting for price differences across the world. (2018, October 6). Retrieved from

Garrett, G. A. (2015). World class contracting (6th ed.). Riverwoods, IL: CCH.